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"The rich who already benefit from carried interest will get a big tax cut," Mr. Holtz-Eakin agreed.
But, unlike holding on to appreciated stock, there is no easy way to avoid realizing the income from carried interest.
The Joint Committee on Taxation, a nonpartisan committee of Congress, has pegged the additional revenue from carried interest at just $16.85 billion over 10 years.
Its fee-related earnings, drawn in large part from carried interest fees, rose 8.7 percent for the quarter, to $95.1 million.
Much of the Romneys' income comes from carried interest, an unusual tax provision that allows employees and executives of private equity firms to pay low taxes.
Venture capitalism has done much better in America than Britain, although the incentive from carried interest is bigger in the latter.
Similar(42)
A reform of the tax on private equity--from "carried interest" to ordinary income--won't happen, as it will be seen as damaging the stock market's underpinnings.
Then MS discourages shoe retailers from carrying competitors' socks.
My arms are starting to hurt from carrying my weight.
But what would I gain from carrying a pistol?
He also warned them from carrying out their own research.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com